-6 : * PANAMA RAIL ROAD COMPANY.

PANAMA RAIL ROAD COMPANY.

Cou. Jay J. Morrow, — :
PRESIDENT, PanaMA Ratt Roap CoMPANY,
BatBoa Heriguts, CANAL ZONE.

Sir—I have the honor to submit herewith the financial Exhibits and
results of the Company’s operations on the Isthmus for the fiscal year

- ending June 30, 1922, with statistical tables and explanatory comments

thereon. :

. The gross revenue from all sources, the operating expenses and the net
income for the year ending June 30, 1922, is compared with the year ending
- June 30, 1921, in the following table: |

Frscan YEAR. GRoss GROSS NeEr
S REVENUE. EXPENSES. INCOME.
LOD ye as ee a ree $6,045,558 67 $7,343,193 06 *$1,297,634 39
TOO So oe eR eS one races eee 10,152,110 98 10,769,639 09 *617,528 11
= Decreases = $4,106,552 31 | $3,426,446 03 2
_ Increase ...... SLRS a cope pans eee ne — —— } *$680,106 28

* Deficit.

OPERATIONS ON THE ISTHMUS.

The Panama Rail Road Company continued its various operations on
the Isthmus during the fiscal year without any material changes in the
organization except that it was found necessary to discontinue the units
_ known as the Hog Farm at Mindi, and the Poultry Farm at Summit, owing
to the continued loss in operations. These units were rented out on con-
tract in the latter part of 1921, and while the Hog Farm is still operating,
the Poultry Farm contract has been abandoned. ; =
In the interest of economy and consolidation of supervision and work,
the operations of the Motor Car Machine Shops were transferred to the
Supply Department of the Panama Canal in December, 1921.

_. The continued business depression in all lines and particularly in
shipping circles was directly reflected in the results from the operations

onthe Isthmus. Railroad revenue and Harbor Terminal revenue show a

heavy decrease, but material reductions in force and economy in operation
have so far offset this that the net results show considerable improvement
over the prior fiscal year. The loss from operations of the Hotel Washing-
ton is also due to the general depression in business combined with the heavy
reduction in the operating personnel on the Isthmus. — | |
The heavy loss in connection with the sale of Coal was due to the
marked reduction in coal prices elsewhere at the beginning of the fiscal
year, necessitating a reduction in price here to the basis of cost or a little
below cost in order to try to dispose of the stock of high-priced coal on hand. _
- The book values of commissary supplies purchased during the time of _
the war and in the period of high prices which followed it were reduced to
meet the falling markets, resulting in heavy losses. The price of beef in

Cras -